5 Investing Choices for a Volatile Market

Try to avoid impulsive decisions governed by emotions and instead focus on investing strengths and weaknesses, changing opportunities and long-term goals.

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(Image credit: Getty Images)

A global recession seems to be looming over investors. According to a probability model run by The Conference Board in October 2022, there is a 96% likelihood of a recession in the U.S. within the next 12 months. Expectedly, investors are spooked, and rightly so: Interest rates have increased, down payments have disappeared, and retirement timelines have shifted. The markets are constantly changing and have proven to be unpredictable.

An unpredictable and unstable market can easily impact our emotional state and lead us to make rash decisions. These rash decisions are common. According to a study by MagnifyMoney, 66% of investors have made an impulsive or emotionally charged investing decision they later regretted. Even experienced investors with firm goals, focused exclusively on long-term growth, can become impulsive and reactionary when faced with changing variables like market movements, low company earnings and corporate actions.

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Brian Barnes
Founder and CEO, M1

Brian Barnes is the Founder & CEO of M1, a personal wealth-building platform that enables people to invest, borrow, spend, and save money easily and optimally using customization and personalization. Hundreds of thousands of people have entrusted M1 with over $5.5B of assets, and M1 has been recognized and featured in The Wall Street Journal, Barron’s, Money, Motley Fool, Investopedia, and Yahoo Finance.